Q 1. Under what conditions might horizontal integra- tion be inconsistent with the goal of maximizing profitability? 2. What is the difference between a company’s in- ternal value chain and the industry value chain? What is the relationship between vertical inte- gration and the industry value chain? 3. Why was it profitable for GM and Ford to integrate backward into component-parts manufacturing in the past, and why are both companies now buying more of their parts from outside suppliers? 4. What value creation activities should a company outsource to independent suppliers? What are the risks involved in outsourcing these activities? 4. Which value creation activities can a company outsource to independent supplier 5. What steps would you recommend that a company take to build mutually beneficial, long-term, cooperative relationships with its suppliers?
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